Bearish outlook intact despite sideways trading

• The EUR/GBP pair traded sideways on Friday, clearing daily gains and stabilizing at 0.8335.
• The RSI and MACD suggest that selling pressure is steady but continues flashing oversold conditions.
• The pair seems to be consolidating Monday’s sharp downward movements.

The EUR/GBP has been in a steady decline over the past trading days and bears stepped out to take a breather. On Friday, the cross initially jumped to 0.8350 and then stabilized at 0.8330 which gives more arguments that the buyers struggle. 

The Relative Strength Index (RSI) is in the near oversold area, suggesting that selling pressure is intense while the Moving Average Convergence Divergence (MACD) histogram is red and flat, which supports the case for consolidation in the near tear. 

The EUR/GBP pair appears to face near-term downward pressure, with bears currently dominating the market. A drop below the 0.8300 support level could trigger further declines. However, oversold signals from technical indicators suggest the possibility of an upward correction. For the bulls to regain control, a break above the 0.8400 resistance level would be necessary.

EUR/GBP daily chart